Profit-Maximizing Strategies (Essay Sample)

Please read each response to the topic and respond to it. In addition to other comments you may have, address the following in your response posts:
What are the ways that a business can figure out how to maximize its profit?
What advantages or disadvantages exist among competitors in other marketplaces, such as an oligopoly, that don't exist in perfect competition?
Use any personal experience, if appropriate, to help support or debate other students' posts. If differences of opinion occur, debate the issues professionally and provide examples to support your opinions. 
Please keep separate. 
Topic: Discuss profit - maximizing strategies.
Address the following in your response:
In a perfectly competitive market, what stands in the way of maximizing profit? What decisions can be made to ensure maximum profit?
Does producing more output than another business in the market necessarily mean having greater economic profit (total revenue minus total cost)? Why or why not?
Response 1: 
Certain steps need to be followed to maximize profit. First you need to find out where the money s being spent. Overhead is one of the biggest categories of expenses that business owners face. Then what is the cost structure. When the cost of raw materials and related costs increase, the additional costs need to be included in the selling price. You need to motivate your employees. When employees are happy they will produce better work and the output will be greater. 
Response 2: 
In a perfectly competitive market where the buyer is perfectly informed the only thing that stands in the way of maximizing profit is competition from other producers. The decisions factors that can maximum profit is to know the product and market better than your competitor. You have to know his product better than him also. By knowing this, you will have an advantage by being able to competitively evolve your product, get it out there to the consumer and not just producing more of it. By just producing more of your product you might be spending unnecessary funds on something that just needs to be introduced to the consumer more effectively.